Answer:
A.) violating user policy
Smith & Sons uses the allowance method of handling its credit losses. It estimates credit losses at two percent of credit sales, which were $2,000,000 during the year. On December 31, the Accounts Receivable balance was $300,000 and the Allowance for Doubtful Accounts had a credit balance of $21,400 before adjustments.
Show how accounts receivable and the allowance for doubltful accounts would appear in the December 31 Balance Sheet.
Answer:
$238,600
Explanation:
Firstly, we need to compute the amount of bad debt
= Credit sale × Bad debt expense
= $2,000,000 × 2%
= $40,000
The adjusted balance of allowance will be the addition of unadjusted balance of allowance account and the bad debt expense
= $21,400 + $40,000
= $61,400
The , the balance will be :
Accounts receivables = $300,000
Less: Allowance for doubtful account = ($61,400)
Net realizable value of account receivable = $238,600
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. Accounts not yet due = $121,000; estimated uncollectible = 15%. Accounts 1–45 days past due = $16,800; estimated uncollectible = 20%. Accounts more than 45 days past due = $6,700; estimated uncollectible = 25%. Before recording any adjustments, Dhaliwal has a debit balance of $30,200 in its allowance for uncollectible accounts.
Required:
1. Estimate the appropriate 12/31/2021 balance for Dhaliwal’s allowance for uncollectible accounts.
2. What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts?
EXPLANATION:
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. 1. Accounts not yet due $285,000; estimated uncollectible 5 % . 2. Accounts 1-45 days past due $39,600; estimated uncollectible 10 % 3. Accounts more than 45 days past due $15,800; estimated uncollectible 15 % Before recording any adjustments, Dhaliwal has a debit balance of $71,100 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts. 2. What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts? Required 1 Required 2 Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts. Balance in allowance for uncollectible accounts Required 2
Dhallwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. 1. Accounts not yet due $285,000; estimated uncollectible 5 %. 2. Accounts 1-45 days past due $39,600; estimated uncollectible 10 %. 3. Accounts more than 45 days past due $15,800; estimated uncollectible 15 % Before recording any adjustments, Dhaliwal has a debit balance of $71,100 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31/2021 balance for Dhalwal's allowance for uncollectible accounts. 2. What journal entry should Dhallwal record to adjust its allowance for uncollectible accounts? Required 1| Required 2 What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts? (If no entry is required for a transaction/event, select "No jounal entry required" in the first account field.) View transaction list Journal entry worksheet Record the adjustment to allowance for uncollectible accounts. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal
Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)
Case A Case B Case C
Direct materials used $ (a) $91,200 $69,000
Direct labor 52,200 143,800 (h)
Manufacturing overhead applied 42,804 (d) (i)
Total manufacturing costs 149,800 (e) 216,100
Work in process 1/1/14 (b) 21,300 18,400
Total cost of work in process 208,600 (f) (j)
Work in process 12/31/14 (c) 11,900 (k)
Cost of goods manufactured 193,500 (g) 232,600
Answer:
(a) $54796 (b) $58,800 (c) $ 15100 (d) $117916 (e) $ 352916 (f) $ 374216
(g) $326316 (h) $ 82824.18 (i) $ 64276.82 (j) $234500 (k) $1900
Explanation:
The calculations are as follows.
Case A Case B Case C
Direct materials used $ (a) 54796 $91,200 $69,000
Direct labor 52,200 143,800 (h) 82824.18
Manufacturing overhead applied 42,804 (d)117916 (i)64276.82
Total manufacturing costs 149,800 (e) 352916 216,100
Working
The following formula is used to find the missing values :
Total MFG Cost= DM + DL+ MFG OH
a) 149800- 42804-52200= 54796
d) Ratio of MfgOH to DL= 42,804/52,200= 0.82
Mfg Overhead for Case 2= 0.82* 143,800= 117916
e) 91,200+ 143,800+ 117916= 352916
h+i) Conversion Costs for Case 3= 216100-69000=147100
Mfg OH is 82% of DL
Total Conversion Cost will be 1.82
1.82x= 147100
x= 147100/1.82
x= 82,824.18
h)DL= 82824.18
i) MFG OH= CC- DL= 147100- 82824.18= 64276.82
Work in process 1/1/14 (b) 58,800 21,300 18,400
Total cost of work in process 208,600 (f) 374216 (j)234500
Working
The following formula is used to find the missing values
Total WIP Cost- Total MFG Cost= Opening WIP
b)Total WIP Cost- Total MFG Cost= 208600-149800= 58,800
f) Total MFG Cost+ WIP= 352916 + 21,300 =374216
j) Total MFG Cost+ WIP=216,100 + 18,400= 234500
Work in process 12/31/14 (c) 15100 11,900 (k)1900
Cost of goods manufactured 193,500 (g) 326316 232,600
Working
The following formula is used to find the missing values
Total WIP-CGS= Ending WIP
c) Total WIP-CGS= 208600-193500 = 15100
g) Total WIP- Ending WIP= 374216- 11,900 = 326316
k) Total WIP-CGS=234500- 232,600 = 1900
After filling in the blanks:
Case A Case B Case C
Direct materials used $ (a) 54796 $91,200 $69,000
Direct labor 52,200 143,800 (h) 82824.18
Manufacturing overhead applied 42,804 (d)117916 (i)64276.82
Total manufacturing costs 149,800 (e) 352916 216,100
Work in process 1/1/14 (b) 58,800 21,300 18,400
Total cost of work in process 208,600 (f) 374216 (j)234500
Work in process 12/31/14 (c) 15100 11,900 (k)1900
Cost of goods manufactured 193,500 (g) 326316 232,600
Which of these production practices promotes sustainable development?
A. Bidding for government contracts
B. The use of renewable resources
C. Offshoring production
D. An assembly line
SUOMI
The production practice that will promote sustainable development is The use of renewable resources.
What is meant by the term renewable resources?Renewable resources are resources that have natural occurrence and overtime they can be replenished.
A major example of renewable resources coal, solar energy.
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Division A offers its product to outside markets for $30. It incurs variable costs of $11 per unit and fixed costs of $75,000 per month based on monthly production of 4,000 units. Division B can acquire the product from an alternate supplier for $31 per unit or from Division A for $30 plus $2 per unit in transportation costs in addition to the transfer price charged by Division A.Required:a. What are the costs and benefits of the alternatives available to Division A and Division B with respect to the transfer of Division A's product? Assume that Division A can market all that it can produce.b. How would your answer change if Division A had idle capacity sufficient to cover all of Division B's needs?
Answer:
a. See part a below for the analysis.
b. We have:
1. Division A total cost = $1,131,000
2. Division A total profit or benefit = $1,509,000
3. Division B total cost = $1,320,000
4. Division A total profit or benefit = $44,000
Explanation:
Note: See the attached excel file for the calculation of calculation of costs and benefits of options available to Divisions A and B.
a. What are the costs and benefits of the alternatives available to Division A and Division B with respect to the transfer of Division A's product? Assume that Division A can market all that it can produce.
Under this condition, each analysis is based on the condition that either Division A or Division B will pay for the transportation cost.
From part a the attached excel file, we have:
1. Division A will incur a total cost of of $559,000 and gets a profit or benefit of $761,000 if it sells to the outside market.
2. Division A will incur a total cost of of $647,000 and gets a profit or benefit of $673,000 if it sells to Division B.
3. Division B will incur a total cost of $1,408,000 if it buys from Division A.
4. Division B will incur a total cost of $1,364,000 if it buys alternate supplier. It thereby saves the transportation cost of $88,000 of buying from A as a benefit.
b. How would your answer change if Division A had idle capacity sufficient to cover all of Division B's needs?
Under this condition, it is assumed that Division A will pay for the transportation cost. Therefore, Division A will sell to both the outside market and Division B.
From part b of the attached excel file, we will have the following based on this condition:
1. Division A total cost = Total cost of selling to the outside market + Total cost of selling to Division B = $559,000 + $572,000 = $1,131,000
2. Division A profit or benefit cost = Total profit or benefits of selling to the outside market + Total profit or benefits of selling to Division B = $761,000 + $748,000 = $1,509,000
3. Division B will incur a total cost of $1,320,000 by buying from Division A. It thereby saves $44,000 (i.e. $1,364,000 - $1,320,000 = $44,000) as a benefit for not buying from alternate supplier.
Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies $278,900 Depreciation expense 69,800 Utilities 29,800 Nurse salaries 259,300 Technician wages 118,200 Total operating room overhead $756,000 The overhead costs will be assigned to procedures, based on the number of surgical room hours. Poehling Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.1. Determine the predetermined operating room overhead rate for the year.
2. Bill Harris has a five-hours procedure on Jan 22. How much operating room overhead would be charged to his procedure, using the rate determined in part 1?
3. During January, the operating room was used 240 hours. The actual overhead costs incurred for January were $67,250. Determine the overhead under or over applied for the period.
Answer:
Results are below.
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Total number of surgical room hours= (8*7)*52= 2,912 hours
Predetermined manufacturing overhead rate= 756,000 / 2,912
Predetermined manufacturing overhead rate= $259.61 per surgical room hour
Now, we can allocate costs using the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 259.61*5
Allocated MOH= $1,298.05
Finally, the under/over allocation for January:
Under/over applied overhead= real overhead - allocated overhead
Allocated overhead= 259.61*240= $62,306.4
Under/over applied overhead= 67,250 - 62,306.4
Underapplied overhead= $4,943.6
Which of the following illustrates Forward Vertical Integration? a. Subway sandwich company buying a bakery to make the bread for their sandwiches b. Sony buying trucks to deliver their finished goods inventories to their customers' warehouses c. Ford automotive buying additional machines for production d. Microsoft starting a new division that designs and manufactures clothing
Answer:
a
Explanation:
Vertical integration is when a firm acquires a business further in its production chain. For example, a sandwich company purchasing a bakery
Subway sandwich company buying a bakery to make the bread for their sandwiches illustrates Forward Vertical Integration. Thus, Option (A) is correct.
Forward vertical integration occurs when a company acquires or integrates a business that is closer to the end consumer or customer in the supply chain.
In the case of the Subway sandwich company buying a bakery to make the bread for their sandwiches, it represents forward integration because it involves bringing a crucial part of the supply chain, the bakery, under Subway's ownership.
By owning the bakery, Subway can have direct control over the production of bread, ensuring quality, consistency, and timely supply of their sandwiches.
This integration allows Subway to streamline its operations, reduce dependency on external suppliers, and potentially gain cost savings. It also strengthens Subway's brand identity and customer experience by offering freshly baked bread made in-house
Thus, Option (A) best illustrates the concept of Forward Vertical Integration among the options given.
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Identify which of the following statements is true. Group of answer choices All of the above are false. If a C corporation does not distribute its income to its shareholders annually, double taxation cannot occur. C corporation operating losses are deductible by the individual shareholders. Capital losses incurred by a C corporation can be used to offset the corporation's ordinary income.
Answer:
All of these are false
Explanation:
The c corporation is a corporation that is entered if the investors or shareholders are large. That is they exceed 100. The investors or shareholders pay taxes on dividends. They are subjected to what is called double taxation and are taxed separately from the owners. The obligations of the corporation are not personal to any individual and liability of the owners, workers or shareholders are limited
A policy maker argues that congestion on the roads can be solved by private ownership of the roads. He argues that if the roads were privately owned, then the externality of congestion would be fully internalized and solved by the market. Discuss this by first explaining the externality problem that leads to congestion, and then explain whether the private market would deliver the efficient level of roads.
Answer:
Externalities can be defined as those activities that incurs cost on another party.
Road congestion creates externalities such as increased time for travel, more pollution in a city, more likelihood of accidents, more stress for road users.
This externaliity is caused because road users think of the private benefits that they can get from using the road but they do not take the social cost into account. We have lots of drivers on the road and non of these drivers takes cognizance of the cost that other drivers get because of this.
If road are private, congestion is going to fall and there would be excludability. But this is a public good, turning it to a private good would cause issues. Private markets benefits out is positive externalities.
The term "externality" refers to elements and situations that occur off-road and cause congestion.
In this regard, we can say that:
The externality of congestion is created by the lack of urban infrastructure, the excess of vehicles on the streets, the lack of traffic inspection, and the lack of road maintenance.All of this allows for an accumulation of vehicles on urban roads, generating congestion, which affects the city in an imposing way.These problems have been treated as public order problems as roads are a public asset managed by the government. Many people believe that government management is the main problem and that if the roads were managed by private companies, these problems would be eliminated.
Although we can recognize that many of these externalities would be solved by private companies, treating the use of roads as a private asset would not solve the problem of congestion, as it would create other externalities, especially about the freedom to use roads.
With this, we can conclude that the externality of congestion would not be reduced with the use of private companies, but maintained with other factors.
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A liquid asset is one that is easy to cash in.
What is the most liquid asset?
Which is more liquid, a savings account or a loan to a business?
The Rob Wallace Corporation has a sales budget for next month of $400,000. Cost of goods sold is expected to be $250,000. All goods are paid for in the month following their purchase. The beginning inventory of merchandise is $16,000, and an ending inventory of $12,000 is desired. Beginning accounts payable is $52,000. How much merchandise inventory will The Rob Wallace Corporation need to purchase next month
Answer: $246000
Explanation:
The amount of merchandise inventory that The Rob Wallace Corporation need to purchase next month will be:
Expected Cost of goods sold = $250000
Less: Beginning Inventory = $16000
Add: Desired Ending Inventory = $12000
The, the Required Purchase of merchandise inventory will be:
= $250000 + $12000 - $16000
= $246000
Pearsall Company has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $113,000; benefits paid to retirees, $14,500; interest cost, $7,500. The discount rate applied by the actuary was 10%. What was the service cost for the year
Answer:
$45,000
Explanation:
Calculation to determine the service cost for the year
PBO, $113,000
Add benefits paid to retirees, $14,500
Less interest cost ($7,500)
Less Beginning PBO ($75,000)
($7,500/0.1)
Service cost $45,000
($113,000+$14,500-$7,500-$75,000)
Therefore the service cost for the year will be $45,000
Given the following model of the economy C = + YD I = G = T = Note: Answer all parts, a-k: a) What is the equilibrium value of Y? b) What is the value of autonomous consumption (c0)? c) What is the value of MPC? d) What is the value of MPS? e) What is the value of APC? f) What is the value of APS? g) Calculate private saving, public saving and national saving. h) Calculate the multiplier. i) What happens to the equilibrium value of Y if G increases by $150? j) What happens to the equilibrium value of Y if T increases by $150, and G remains at its original value of ? k) What happens to the equilibrium value of Y if both G & T increase by $150 from their original amounts? If your answer is not a whole number, round at 2 decimal places. If your answer is negative, enter a minus sign before the number. a) The equilibrium value of Y = $ nothing b) Autonomous consumption = $ nothing c) MPC = nothing d) MPS = nothing e) APC = nothing f) APS = nothing g) Private Saving = $ nothing Public Saving = $ nothing National Saving = $ nothing h) The multiplier = nothing i) The change in the equilibrium value of Y is $ nothing , and the new equilibrium value of Y = $ nothing
Answer:
a) The equilibrium value of Y is 41,180.
b) The value of autonomous consumption (c0) is 12557.
c) The value of MPC is 0.5.
d) The value of MPS is 0.5.
e) The value of APC is 0.70
f) The value of APS is 0.30
g) Private saving is 32286; Public saving is -1305; and National saving is 30981
h) Multiplier = 2
i) The equilibrium value of Y increases by $300.
j) The equilibrium value of Y decreases by $150.
k) The equilibrium value of Y increases by $150.
Explanation:
Note: The model is not complete as the figures in it are omitted. The complete model of the economy is therefore provided before answering the question as follows:
C = 12557 + 0.5YD
I = 2281
G = 10199
T = 8894
The explanation of the answers is now given as follows:
a) What is the equilibrium value of Y?
YD = Y - T .............. (1)
Equilibrium value of Y can be obtained using the following formula:
Y = C + G + I ............................ (2)
Substituting all the values into equation (2), we have:
Y = 12557 + 0.5YD + 2281 + 10199 ………………….. (3)
Substituting equation (1) into equation (3), we have:
Y = 12557 + 0.5(Y – T) + 2281 + 10199 ……………… (4)
Substitute T = 8894 into equation (4) and solve for Y, we have:
Y = 12557 + 0.5(Y – 8894) + 2281 + 10199
Y = 12557 + 0.5Y – (0.5 * 8894) + 2281 + 10199
Y – 0.5Y = 12557 – (0.5 * 8894) + 2281 + 10199
(1 - 0.5)Y = 20590
0.5Y = 20590
Y = 20590/0.5
Y = 41,180
b) What is the value of autonomous consumption (c0)?
From C = 12557 + 0.5YD, the value of autonomous consumption (c0) is 12557.
c) What is the value of MPC?
From C = 12557 + 0.5YD, the value of MPC is 0.5.
d) What is the value of MPS?
MPS = 1 – MPC = 1 – 0.5 = 0.5
e) What is the value of APC?
YD = Y – T = 41180 – 8894 = 32286
C = 12557 + 0.5YD = C = 12557 + (0.5 * 32286) = 28,700
APC = C / Y = 28700 / 41,180 = 0.70
Note: This is not part of the answer but just additional information. Sometimes, YD is used. Then, we have:
APC = C / YD = 28700 / 32286 = 0.89
f) What is the value of APS?
APS = 1 – APC = 1 – 0.70 = 0.30
Note: This is not part of the answer but just additional information. If YD is used to calculate APC as it can be done sometimes, then we have:
APC = C / YD = 28700 / 32286 = 0.89
APS = 1 – APC = 1 – 0.89 = 0.11
g) Calculate private saving, public saving and national saving.
Private saving = Y – T = 41180 – 8894 = 32286
Public saving = T – G = 8894 – 10199 = -1305
National saving = Private saving + Public saving = 32286 -1305 = 30981
h) Calculate the multiplier.
Multiplier = 1 / MPS = 1 / 0.5 = 2
i) What happens to the equilibrium value of Y if G increases by $150?
Change in Y = Increase in G * Multiplier = $150 * 2 = $300
Since it is positive, it implies that the equilibrium value of Y increases by $300
j) What happens to the equilibrium value of Y if T increases by $150, and G remains at its original value of ?
Tax multiplier = - MPC/MPS =-0.5/0.5 = -1.0
Change in Y = Increase in T * Tax multiplier = $150 * (-1.0) = -$150
Since it is negative, it implies that the equilibrium value of Y decreases by $150.
k) What happens to the equilibrium value of Y if both G & T increase by $150 from their original amounts?
Change in Y = Change in Y as a result of change in G + Change Y as a result change in T = $300 + (-$150) = $300 - $150 = $150
Since it is positive, it implies that the equilibrium value of Y increases by $150.
Woolsey Corporation, a U.S. company, expects to sell goods to a British customer at a price of 250,000 pounds, with delivery and payment to be made on October 24. On July 24, Woolsey purchased a three-month put option for 250,000 British pounds and designated this option as a cash flow hedge of a forecasted foreign currency transaction expected to be completed in late October. The following exchange rates apply:
Option Strike Price = $2.17
Option Cost : $4,000
July 24th Spot Rate : $2.17
October 24th Spot Rate :$2.13
October 24th Option Premium : $.04
What amount will Woolsey include as Adjustment to Net Income for the period ended October 31?
A. $6,000 positive.
B. $6,000 negative.
C. $10,000 positive.
D. $10,000 negative.
E. $14,000 positive.
Answer:
C. $10,000 positive.
Explanation:
The computation of the amount that should be included is shown below:
= (Option strike price - spot rate) × purchased put options
= ($2.17 - $2.13) × 250,000
= $10,000
As the spot rate is less than the strike price so automatically there is a gain of $10,000
Hence, the option c is correct
Over a six-month period in 2007, the price of corn increased by almost 70% as a result of increased demand for ethanol biofuel.
a. As a result of the price increase in corn, the of corn would . At the same time, the amount of acreage used in corn production would
b. Which of the following would be the most likely cause of the change in the amount of acreage used in corn production?
A. The higher price signals suppliers that corn is becoming more valuable.
B. Consumers directly inform suppliers of the increased demand for corn.
C. The government mandates that U.S. corn producers increase the acreage they devote to corn production to keep up with demand.
D. Economists publish reports in trade magazines informing farmers of the increased demand for corn.
Answer:
a. As a result of the price increase in corn, the supply of corn would increase. At the same time, the amount of acreage used in corn production would increase.
b. The most likely cause of the change in the amount of acreage used in corn production is:
A. The higher price signals suppliers that corn is becoming more valuable.
Explanation:
With corn as the major ingredient for the production of ethanol biofuel the demand and supply of corn increase to match with the increasing price. Suppliers, on their part, increase production by utilizing more acreage of land devoted for corn production. This is the typical interplay between the market forces that drive market equilibrium.
Answer:
a. As a result of the price increase in corn, the quantity supplied of corn would increase. At the same time, the amount of acreage used in corn production would increase.
The most likely cause of the change in the amount of acreage used in corn production is the higher price signals suppliers that corn is becoming more valuable.
Explanation:
Corn is an input for ethanol biofuel. An increase in demand for ethanol biofuel results in an increase in the demand for corn. As more ethanol is being produced, more corn is used in the production process.
The increase in the demand for corn increases the price of corn. As the price of corn increases, there is an increase in the quantity supplied of corn. Farmers are growing larger quantities of corn, which results in an increase in the acreage used for corn production.
An increase in price causes a movement along the supply curve. It does not cause a shift of the supply curve.
Consumers do not directly inform farmers of their increase in the demand for corn. Price serves as the market signal. Consumers are willing to pay a higher price for corn, showing that they value corn more.
The government does not generally regulate what specific crop is grown on private farmland. Furthermore, economists may publish predictions, but farmers are most responsive to changes in market price.
Beyoncé Corporation factors $175,000 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2014.Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments.Instructions:(a) What conditions must be met for a transfer of receivables with recourse to be accounted for as a sale?(b) Assume the conditions from part (a) are met. Prepare the journal entry on August 15, 2014, for Beyoncé to record the sale of receivables, assuming the recourse obligation has a fair value of $2,000.
Answer:
(a) What conditions must be met for a transfer of receivables with recourse to be accounted for as a sale?
The transferrer losses control over the transferred assets. The transferees possess the right collect, pledge or exchange the transferred assets. The transferred assets are separate form the transferrer.
(b) Assume the conditions from part (a) are met. Prepare the journal entry on August 15, 2014, for Beyoncé to record the sale of receivables, assuming the recourse obligation has a fair value of $2,000.
Dr Cash 164,500
Dr Factor receivables 7,000
Dr Loss from factoring dues 5,500
Cr Accounts receivables 175,000
Cr Recourse liability 2,000
what are the market trends and growth of netflix
The amount of resources used in an activity-based costing (ABC) system for a specific activity is computed by multiplying the ______________ (chapter 10) A. cost driver rate and the actual cost driver volume B. cost driver rate and the planned cost driver volume C. overhead rate and the actual cost driver volume D. overhead rate and the planned cost driver volume
Answer: A. cost driver rate and the actual cost driver volume
Explanation:
When using activity-based costing, the cost for an activity is based on the cost driver rate, which is the cost per unit of the activity, and the actual cost driver volume which is how many units was used in the activity.
For instance, if the cost driver rate for marketing is $8 per unit and 50 units were produced - actual cost driver volume- then the cost of marketing would be:
= 8 * 50
= $400
Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy:Direct materials: 6 microns per toy at $1.50 per micron Direct labor: 1.3 hours per toy at $21 per hourDuring July, the company produced 3,000 Maze toys. Production data for the month on the toy follow:Direct materials: 25,000 microns were purchased at a cost of $1.48 per micron. 5,000 of these microns were still in inventory at the end of the month.Direct labor: 4,000 direct labor-hours were worked at a cost of $88,000.Required: 1. Compute the following variances for July:a. The materials price and quantity variances.b. The labor rate and efficiency variances.
Answer:
1. a. The materials price and quantity variances
Material price variance: Standard cost per micron is $1.50 and actual cost per micron is $1.48. So, price variance is 1.48 - 1.5 = $(0.02) per micron
Quantity variance: Based on standard bill of material, Dawson Toys need 3,000 x 6 = 18,000 microns to produce 3,000 Maze toys. Actual consumption volume is 25,000 - 5,000 = 20,000 microns. So, quantity variance is 20,000 - 18,000 = 2,000 microns.
1. b. The labor rate and efficiency variances
Actual labor rate = Actual labor cost / Actual hour = 88,000/4,000 = $22 per hour.
Efficiency variance = Actual labor rate - Standard labor rate = 22 - 21 = $1 per hour.
2. Prepare a brief explanation of the possible causes of each variance.
Direct material cost variance: Total actual material cost is 20,000 x 1.48 = $29,600, higher than standard material cost of 18,000 x 1.5 = $27,000. This is mainly due to higher production waste as compared to standards.
Direct labor cost variance: Total actual labor cost is $88,000, higher than standard labor cost of 4,000 x 21 = $84,000. This is mainly due to lower labor rate per hour than expected.
Explanation:
Tri-State Mill uses a special sander to finish lumber. Data on the sander and its usage follow. Cost Driver Rate Cost Driver Volume Resources used Energy $ 0.90 per machine-hour 6,000 machine-hours Repairs $ 16.00 per job 600 jobs Resources supplied Energy $ 6,900 Repairs 12,000 Required: Compute unused resource capacity in energy and repairs for Tri-State Mill.
Answer and Explanation:
The computation of the unused resource capacity in energy and repairs for Tri-State Mill. is shown below;
For energy
= $6,900 - 6,000 × $0.90
= $6,900 - $5,400
= $1,500
For repairs
= $12,000 - 600 × $16
= $12,000 - $9,600
= $2,400
Hence, the unused resource capacity in energy and repairs for Tri-State Mill. is $1,500 and $2,400 respectively
Assume you are the internal controls expert for your company. Your boss has read about Madoff’s Ponzi scheme described in our textbook. Your boss is now worried that your own company, which invests a significant amount of retirement funds for its employees, could fall victim to a similar scheme. He has just sent you a memo asking: "Which specific internal controls should our company adopt to avoid falling for a scheme like this?" Respond with a memo to your boss detailing at least three internal controls that you would recommend implementing at your company, assuming none are in place right now, to minimize the risk of becoming the victim of an investment fraud. For each internal control you recommend provide: A detailed description of the policy or procedure to be implemented. An explanation of how specifically it would mitigate the risk of being defrauded. A description of any disadvantages the internal control may have. After submitting your own initial post, change hats! Now assume you are the boss; read your classmates recommendations and question/challenge them as an effective boss would.
Answer:
There are many measures a company can undertake to uplift the standards of internal controls, however few of those are enumerated as under -
1. Due Diligence - almost everyone would suggest it but the implementation differs from company to company. The term encompasses wide activities i.e. from improving quality of internal audit to upkeeping of financial records etc. Keeping a check on existing & old investment pattern would certainly help in analyzing the response of investments as per prevailing market condition. Disadvantages of the process include involvment of additional manpower and cost.
2. Choosing right Investment firms and/or Fund Manager - In the complex business market which prevails today, finding the right guy seems to be a difficult job. It is important that we carefully study not only the investment patterns and subsequent returns of the Investment firms / Fund Manager but also background, qualifications and previous legal records to arrive at suitable guy for suitable job. Sometimes we choose a skeptical but a honest guy, which may lead to sacrifice in short term gains but particulary in retirement funds with long term goals, security of funds assume priority.
3. Selecting the financial products - Today there are numerous financial products available in the market, many of them offer fancy returns but the goals of such financial products must be re-aligned to the goals of the company and its employees. For the company a decent return over long run with high degree of security is the objective when it comes to retirement funds. The financial product must have an appropriate mix of debt, equity and liquid funds and particularly the component of debt must increase with the age of an employee which will ensure security of funds by the time he attains superannuation. Disadvantage majorly includes loss of returns due to less investment in equity during the final stages of career.
Explanation:
The aggregate demand curve is downward sloping because production costs decline as real GDP increases. is upward sloping because a higher price level is necessary to make production profitable as production costs rise. shows the amount of expenditures required to induce the production of each possible level of real GDP. shows the amount of real GDP that will be demanded at each possible price level. g
Answer: shows the amount of real GDP that will be demanded at each possible price level.
Explanation:
The Aggregate Demand curve shows how much of real GDP is demanded at each possible price level which means that is shows the effect of the price level on real GDP.
If the price level rises, real GDP will decrease and if the price level falls, real GDP rises. This is why the aggregate demand curve is downward sloping, to reflect this inverse relationship between real GDP and price level.
When the original poverty line was created, even some people living above the poverty line did not have access to a phone or running water in their homes.
Today, running water is expected. Beyond that, the norm for our contemporary society includes having cell phones and internet access. In fact, the U.S. government provides grants to bring high-speed in-home internet access to underserved rural areas.
Consider both the benefits and the shortcomings of the U.S. poverty line as a means of assessing poverty today.
The U.S. poverty line was originally set at
a. an income level of $1.90 per day.
b. sufficient income to provide for a family of four.
c. one-third of the median income in the United States.
d. three times the cost of a low-cost food plan.
Answer:
d. three times the cost of a low-cost food plan.
Explanation:
The U.S. poverty line is measured based on three times the cost of low-cost food plan. The people in the rural areas are considered more poor and they are provided with basic necessities. The U.S. government takes initiatives to encourage rural population to contribute their expertise and strengths in some projects. They provide welfare benefit to those who are needy and can not survive on their earnings.
R. Stetson contributed $14,000 in cash plus office equipment valued at $7,000 to the SJ Partnership. The journal entry to record the transaction for the partnership is:
a. Debit Cash $14,000; debit Office Equipment $7,000; credit R Stetson, Capital $21,000.
b. Debit Cash $14,000; debit Office Equipment $7,000; credit SJ Partnership, Capital $21,000.
c. Debit SJ Partnership $21,000; credit R. Stetson, Capital $21,000.
d. Debit R. Stetson, Capital $21,000; credit SJ Partnership, Capital $21,000.
e. Debit Cash $14,000; debit Office Equipment $7,000; credit Common Stock $21,000.
Answer:
A
Explanation:
Got question and got it right
somebody help pls name two business ethics that the Snack Corner failed to adhere to.
Answer:
create a news report paragraph by using active and passive verb forms fictional or real about an environmental event about earthquakes select a location city or country
Explanation:
員員員員員員員員On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The first three are to be $37,000 each, and will be paid on December 31, 2021, 2022, and 2023. The last three are to be $52,000 each and will be paid on December 31, 2024, 2025, and 2026. Montgomery borrowed other money at a 11% annual rate. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. At what amount should Montgomery record the note payable and corresponding cost of the building on January 1, 2021
Answer:
cost of the building = $183,331.14
Explanation:
we have to calculate the present value of all the future annual payments using the 11% discount rate:
$37,000 x 2.4437 (PVIFA, 11%, 3 periods) = $90,416.90
($52,000 x 2.4437) / (1 + 11%)³ = $92,914.24
total present value = $183,331.14
Vegas Corp. is a U.S. firm that exports most of its products to Canada. It historically invoiced its products in Canadian dollars to accommodate the importers. However, it was adversely affected when the Canadian dollar weakened against the U.S. dollar. Since Vegas did not hedge, its Canadian dollar receivables were converted into a relatively small amount of U.S. dollars. After a few more years of continual concern about possible exchange rate movements, Vegas called its customers and requested that they pay for future orders with U.S. dollars instead of Canadian dollars. At this time, the Canadian dollar was valued at $.81. The customers decided to oblige, since the number of Canadian dollars to be converted into U.S. dollars when importing the goods from Vegas was still slightly smaller than the number of Canadian dollars that would be needed to buy the product from a Canadian manufacturer. Based on this situation, has transaction exposure changed for Vegas Corp.
Answer: See explanation
Explanation:
Transaction exposure is the uncertainty
which is faced by businesses that are involved in international trade. It occurs when there's fluctuation in the exchange rates after a financial obligation has been done by a firm.
From the question above, we can agree that there will be a change in transaction exposure for the company as there'll be a reduction in the transaction exposure. This is because future orders will be in U.S. dollars instead of Canadian dollars.
Davis Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for September when Davis produced 5,000 units: Standard: DLH per unit 3.00 Variable overhead per DLH $1.80 Fixed overhead per DLH $3.25 Budgeted variable overhead $27,250 Budgeted fixed overhead $49,500 Actual: Direct labor hours 16,000 Variable overhead $31,325 Fixed overhead $49,750 Refer to Davis Company. Using the four-variance approach, what is the variable overhead efficiency variance
Answer:
$1,800
Explanation:
Calculation to determine the variable overhead efficiency variance
Using this formula
VOH Efficiency Variance = Budgeted VOH based on Actual - Budgeted VOH/Standard Qty
Let plug in the formula
VOH Efficiency Variance = ((16,000 * $1.80/hr) - ((5,000 * 3.00hrs/unit * $1.80/hr))
VOH Efficiency Variance = $(28,800.00 - $27,000.00)
VOH Efficiency Variance = $1.800
Therefore Using the four-variance approach, what is the variable overhead efficiency variance will be $1,800
Nutcracker, Inc has forecast sales for the next three months as follows: July 4,000 units, August 6,000 units, September 7,500 units. Nutcracker's policy is to have an ending inventory of 40% of the next month's sales needs on hand. July 1 inventory is projected to be 1,500 units. Selling and administrative costs are budgeted to be $15,000 per month plus $5 per unit sold. What are budgeted selling and administrative expenses for July
Answer:
$35,000
Explanation:
Use the provided cost formula :
Selling and administrative expense = $15,000 + $5y
where,
y is the number of units sold
Therefore,
Selling and administrative expense = $15,000 + $5 x 4,000 units
= $35,000
Expected cash dividends are $4.00, the dividend yield is 8%, flotation costs are 6% of price, and the growth rate is 5%. Compute the approximate cost of new common stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Explanation:
[tex]\text { Dividend, } \mathrm{D}= 4 \\\text { Dividend yield rate }=\mathrm{D} / \text { Current price }=8 % \\\text { Current price }, \mathrm{P} 0=\mathrm{D} / 8 \%=\$ 4 / 8 \%=$ 50[/tex]
[tex]\text { Flotation cost, } \mathrm{F}=8 \% \text { of current price }=\$ 50 * 8 \%=\$ 4 \\ \text { Growth rate,g }=4 % \\ \text { Cost of new common stock, } \mathrm{Ke}=[\mathrm{D} 1 /(\mathrm{P} 0-\mathrm{F})]+\mathrm{g} \\ =[\$ 4 /(\$ 50-\$ 4)]+4 \% \\ =0.086956522+0.04 \\ =0.126956522=12.7 \% \text {(Rounded) }[/tex]
12.7%